AP TAG 4.0 PLI Top-up Subsidy
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
A top-up subsidy for Sub-Large and Large enterprises in Andhra Pradesh that have received GoI approval under Production Linked Incentive (PLI) schemes or other notified central schemes, offering 10% of the sanctioned incentive capped at 5% of eligible Fixed Capital Investment.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
The Government of Andhra Pradesh introduces the AP TAG 4.0 PLI Top-up Subsidy as a key incentive under its Textile Policy 2024-29. This scheme is designed to bolster industrial growth and attract significant investments within the state's textile and apparel sector. It specifically targets Sub-Large and Large enterprises that have already secured approval under the Government of India's Production Linked Incentive (PLI) schemes or other Central Government schemes recognized by the state.
The primary objective of this top-up subsidy is to provide additional financial encouragement, enhancing the competitiveness and viability of large-scale projects in Andhra Pradesh. By supplementing central incentives, the state aims to mitigate capital expenditure burdens, facilitate faster project implementation, and foster a robust manufacturing ecosystem. This initiative is crucial for positioning Andhra Pradesh as a leading hub for textile and apparel manufacturing, creating employment opportunities, and driving economic development.
Eligible enterprises can leverage this incentive for new projects, significant expansions, or diversification efforts within the textile value chain. The subsidy acts as a critical financial lever, enabling businesses to invest in advanced machinery, infrastructure, and technology, thereby contributing to higher productivity and quality standards in the sector. The structured disbursement over five years ensures sustained support aligned with project milestones and operational stability, promoting long-term growth and sustainability for these large enterprises.
Eligibility
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Subsidy providers
The Department of Handlooms & Textiles is the Government of Andhra Pradesh's department for the state's handloom and textile sector. It runs state and central schemes for handloom weavers, powerloom units and weavers' co-operative societies, and is based at Mangalagiri. Most of…
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What You Get
Eligible enterprises will receive a significant financial advantage through a top-up subsidy equivalent to 10% of the incentive sanctioned under their respective Production Linked Incentive (PLI) scheme or any other central government scheme notified by the state government. This additional support is strategically capped at 5% of the eligible Fixed Capital Investment (FCI) of the project, ensuring a balanced and impactful contribution. The subsidy is meticulously disbursed over a period of 5 years, providing sustained financial relief and supporting the long-term operational and growth plans of the enterprises. This direct cash benefit aims to reduce the overall financial burden, stimulate further investment, and enhance the competitive edge of textile and apparel manufacturing units in Andhra Pradesh.
- Disbursement
- Tranched
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the AP TAG 4.0 PLI Top-up Subsidy involves a meticulous evaluation by the state government authorities. Applications from Sub-Large and Large enterprises will be screened for completeness and adherence to the eligibility criteria, particularly regarding their existing approval under Government of India PLI or other notified schemes. A dedicated committee, comprising officials from the Department of Industries and other relevant state departments, will review the project proposals, verify the declared Fixed Capital Investment (FCI), and assess the project's alignment with the objectives of the AP Textile Policy 2024-29. This evaluation ensures that only projects demonstrating genuine investment, growth potential, and compliance with policy norms receive the top-up incentive.
Application Process
- 1
Submit Application
Enterprises submit a detailed application with required documents after securing GoI scheme approval.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the AP TAG 4.0 PLI Top-up Subsidy?
This is a financial incentive provided by the Government of Andhra Pradesh under its Textile Policy 2024-29. It offers an additional subsidy to Sub-Large and Large enterprises that have secured approval under the Government of India's Production Linked Incentive (PLI) schemes or other state-notified central schemes, for new, expansion, or diversification projects.
Who is eligible to claim this subsidy?
Sub-Large and Large enterprises that have received approval from the Government of India under specific PLI schemes or other GoI schemes recognized by the state government, and are undertaking new, expansion, or diversification projects in the textile and apparel sector in Andhra Pradesh, are eligible.
What is the quantum of the subsidy?
The subsidy is 10% of the incentive amount sanctioned under the primary PLI/GoI scheme. This top-up, however, is capped at a maximum of 5% of the eligible Fixed Capital Investment (FCI) for the project.
How will the subsidy be disbursed?
The eligible top-up subsidy amount will be disbursed to the enterprises over a period of five years. The exact tranches and conditions for disbursement will be outlined in the detailed guidelines of the policy.
Which industries are specifically covered by this policy?
This subsidy is specifically aimed at the textile and apparel manufacturing sector as it is part of the AP Textile Policy 2024-29. Projects within the textile value chain are the primary focus.
What is 'eligible FCI' in the context of this subsidy?
Eligible Fixed Capital Investment (FCI) typically refers to the investment made by the enterprise in land, building, plant, and machinery for the approved project. The specific definition and components included in 'eligible FCI' will be detailed in the comprehensive guidelines of the AP Textile Policy.
Sources
Data on this page is compiled from official program and provider references.
